Dividends & life
There’s a hidden side to compound interest that is frequently overlooked...
What happens when we go deeper into our good decisions?
What if we start thinking long-term and “reinvest the dividends...”
An investor who put $10,000 into an S&P 500 index fund in 1970 would have more than $350,000 by the end of 2019 - not bad. (according to data from Morningstar and Hartford Funds. That return is the price growth only, as it assumes no dividends)
However, adding in dividends changes the equation dramatically. Investors who reinvested their dividends back into that same S&P 500 index fund would have more than $1.6 million at the end of the same 50 years
Big difference...
I hope to remind you that every single decision we make in our daily lives also pays dividends.
Often we spoil them as a result of short-term thinking.
We eat well all week, therefore we can afford a cheat meal on Sunday.
We save hard so that we can make a big splurge
What about relationships? Imagine 365 days of 100% intentional love and premeditated acts of kindness, never skipping a beat. Where do you think your relationship will be vs. waiting for special occasions to show love in a big way?
Those who are in the top 0.001% in any form let dividends from the decisions they make compound in their favor.
Don’t take “money off the table” or let off the gas, instead reinvest dividends daily wherever you can - the best life has to offer will find you because of it.